föllowingCost FactorSite B170,000$Site APrice of land100,000SMonthly cost of delivering materials S 10,000$ 7,000Cost of equipment setup$ 12,000$ 9,000Cost of utilities per month$ 1,5001,100For site A, an extra $ 60/ day is needed for additional site guards.a- Which site should the contractor select?b- When do the costs of two sites are equals (After how many months of work the costs aresimilar)?

The decision regarding choosing the one alternative over the another is one of the difficult task…

Answered: a- Which site should the contractor…

a- Which site should the contractor select? b- When do the costs of two sites are equals (After how many months of work the costs are similar)?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Allocate the two support departments’ costs to the two operating departments using the reciprocal…

A: Reciprocal Method: The reciprocal method is the method that recognizes all the relations between the…

Q: An example of a committed fixed cost is: A) management training seminars. B) a long-term equipment…

A: Committed fixed cost: It is the cost that does not change easily and required to maintain current…

Q: Which of the following costs is irrelevant to replacement analysis? a. Operating cost of the…

A: Introduction:- Irrelevant costs are costs, either positive or negative. Which would not be affected…

Q: If you are the Financial Manager of Zenith Construction Company, which of the three alternatives has…

A: Solution Concept There are three different alternative course of action given The alternative with…

Q: Under the reciprocal method, what would be the total Engineering department cost?

A: Calculation of total Engineering department cost : Given, Allocation of Maintenance cost to other…

Q: You are the project manager for a technical implementation project. The customer has requested that…

A: Summary of question:Project manager has been requested by the customer to factor in after the…

Q: Which of the following best defines the allocation base Select one: O a. It is selected based on the…

A: SOLUTION- ALLOCATION BASE- IT IS A BASIS UPON WHICH AN ENTITY ALLOCATES ITS OVERHEAD COSTS. AN…

Q: 7. Assuming direct labor is a variable cost: a. Determine the number of WVD drums (if any) that…

A: Answered required 7 (a) and (b), some data were taken from previous answered question. Please refer…

Q: If physical output method is used in allocating joint cost, how much is Product X's share of the…

A: Joint costs are those costs that are incurred on two or more than two products simultaneously. These…

Q: Belpre Inc. constructed a new office building. Building material costs for the new building were…

A: Fixed assets means the asset which is used by company for many years to come for the purpose of…

Q: If direct materials are added at the beginning of a process, the equivalent units completed of…

A: The equivalent units are calculated on the basis of the percentage of the work completed during the…

Q: Discuss two different criteria Mr. Smith can use to determine the sequence for allocating support…

A: Cost allocation is a process of assigning or allocating indirect cost to each and every unit using a…

Q: The Green Company processes unprocessed goat milk up to the split-off point where two products,…

A: Here joint costs should be allocated on basis of Net realizable value

Q: The standard price per unit for direct materials should reflect the final, delivered cost of the…

A: The given statement is True

Q: 0) A large project usually involves a large number of activities Management need some way to…

A: Work breakdown structure: It is a structure which gives the outline of a project going to be done.…

Q: a predetermined application rate for conversion costs is based on actual conversion costs divided by…

A: Conversion costs are costs that are incurred for converting raw materials of the business into…

Q: Research and development activities may include (a) personnel costs, (b) materials and equipment…

A: Research and development cost: These are the cost that is incurred on the research for producing the…

Q: What are the indirect annual costs for condensing systems?

A: Indirect cost is the cost that is not directly involved in the production process of the company. It…

Q: Peter Senen Manufacturing Company has just completed its production activities for February 2019.…

Q: d. If the salvage value of equipment at the end of a project is highly uncertain, the salvage value…

A: d. If the salvage value of equipment at the end of a project is highly uncertain, the salvage value…

Q: Given the two machines' data Machine A Machine B First Cost P8.000.00 P14,000.00 Salvage value…

A: Equivalent uniform annual Cost=Initial CostPresent Value Annuity Factor+Annual Cost

Q: Hector's Camera Shop has prepared the following flexible budget for September and is in the process…

A: A flexible budget is a budgeting technique that adjusts the budgeted amounts based on changes in the…

Q: 7. Which of the following statements is CORRECT? a. A sunk cost is any cost that must be expended in…

A: In this question we need to select the correct statement in relation to Sunk cost.

Q: Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called…

A: The variance is computed by comparing standard cost and actual cost. The standards are settled on…

Q: Allocate the two support departments’ costs to the two operating departments using the Step-down…

Q: Electirical costs to light the production facility, is it a indirect material or direct material?…

A: Direct material: Material which is used in manufacturing process and also inseparable from the…

Q: Q.Do you think Chandler had a valid reason for dissatisfaction with the cost and price of its…

A: Customer C will not be satisfied if the company follows the simple costing system to allocate the…

Q: Which of the following applies conservatism to the financial statements of a full cost company?…

A: In accounting, the convention of conservatism, also known as the doctrine of prudence, is a policy…

Q: Three alternatives identified as X, Y, and Z were evaluated by the B/C method. The analyst…

A: Benefit cost analysis helps managers to calculate the costs and benefits of a project. It is the…

Q: Which of these costs would be the most difficult to estimate when you know exactly how many units…

A: When you know exactly how many units will be produced, the cost of materials used in the product…

Q: 5. Which of the following costs should be excluded from research and development expense? a.…

A: The research and development cost is the direct expenses incurred by the company for developing and…

Q: What are two additional types of costs incurred to support any manufacturing project?

A: The manufacturing companies are the companies which deal in the production or change in the raw…

Q: rice P200 10 per hour) our) P60 40 15

A: Conversion cost is the sum of direct Labor cost and Manufacturing overhead cost. In the given…

Q: Allocate the August 2017 joint cost among the three products using the following: a.…

A: Net Realizable Value (NRV) method: NRV method is a method of joint cost allocation which takes…

Q: 53,600 equivalent units for direct materia 48,800 equivalent units for direct labor; _nd 42,000…

A: Given in the Question During October : cost of ; Direct materials = $158,688 Overhead = $85,200…

Q: Using incremental analysis, determine if the component should be purchased from the outside…

A: Incremental analysis is a decision-making technique used in business to determine the true cost…

Q: Initial Cost Savings in Labor Costs Life High-cost Equipment (A) $137,910 $42,000/year 5 years…

A: Internal rate of return:The Internal Rate of Return (IRR) is a critical metric used in finance and…

Q: What is the EOQ for this component? b. What is the reorder point? c. What is the cycle time?

A: I am answering the first three sub-parts of the question as per bartleby policies. Please re-submit…

Q: How does time and motion study works? How could this method or process quantify the labor standard…

A: Cost accounting: Cost accounting is the process of classifying, recording, analyzing and…

Q: e following information pertains to En Company: Cost of goods manufactured Beginning work-in-process…

A: The prime cost includes the direct costs such as direct materials, and direct labor cost.

Q: 1. Compare and explain differences in the support-department costs allocated to eachproduction…

A: To compare and explain the differences in the support-department costs allocated to each production…

Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

föllowing
Cost Factor
Site B
170,000$
Site A
Price of land
100,000S
Monthly cost of delivering materials S 10,000
$ 7,000
Cost of equipment setup
$ 12,000
$ 9,000
Cost of utilities per month
$ 1,500
1,100
For site A, an extra $ 60/ day is needed for additional site guards.
a- Which site should the contractor select?
b- When do the costs of two sites are equals (After how many months of work the costs are
similar)?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Allocate the two support departments’ costs to the two operating departments using the following methods: The Algebraic/reciprocal method?
1. Compute the minimum transfer price that Green Yard should be required to accept. 2. Compute the increase (decrease) in total contribution margin for Lawn Supplies, Inc. for this transfer.
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Con Supplies costs Power costs Inspection costs Assembly costs a. Supplies costs a. Power costs Alternative Q Alternative R $ 67,000 $ 67,000 $ 31,000 $ 30,100 $ 30,100 $ 35,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternat b. What is the differential cost between the two alternatives? a. Inspection costs a. Assembly costs b. Differential cost $ 21,000 $ 35,000 ६
During an earned value management exercise, a project manager is asked by a senior partner about the most current cost estimate. They would like to know the value of work completed against actual cost. The best formula to use would be: 1. EV-AC2. EV/PV3. EV/AC4. EV-PV
How would merging of two systems affect the costing of the new system including the impact on contingency costing?
If the factory operations and selling and administrative offices are housed in the samebuilding, what would be a good cost allocation basis to use in dividing the depreciationexpense between the two areas? Why would it be important to make this allocation?
TRUE OR FALSE a, A cost that is traceable to a segment through activity-based costing is always an avoidable cost for decision making. b. One way to increase the effective utilization of a bottleneck is to reduce the number of defective units. c. Two or more products that are produced from a common input are known as joint products. d. If the salvage value of equipment at the end of a project is highly uncertain, the salvage value should be ignored in capital budgeting decisions. - e. A cost that is traceable to a segment through activity-based costing is always an avoidable cost for decision making. f. Eliminating nonproductive processing time is particularly important in a bottleneck operation. g. In a decision to drop a product, the product should be charged for rent in proportion to the space it occupies even if the space has no alternative use and the rental payment is unavoidable.
A decrease in the sales of a current project because of the launching of a new project is A. irrelevant to the investment decision. B. an overhead expense. C. a sunk cost. OD. cannibalization.
1. Is the spoilage a normal or an abnormal spoilage? - Normal or Abnormal 2. What is the EUP for materials? 3. How many units were transferred out? 4. What is the EUP for conversion costs?
Which of the following cost and cost allocation base have a stronger cause and effect relationship? A) administration costs and cubic feet B) setup costs and square feet C) quality control costs and the number of inspections D) machine maintenance and setup hours
Which of the following descriptions could be applied to the IT costs in question four? ( previous question) a. Afixedproductionexpenseb. Asemi-variableadministrationoverhead c. A variable direct research expensed. A mixed direct labour distribution cost